| Posted by: Jeff Aug 17 2003, 12:13 AM |
I would like to purchase a condo to treat soley as a rental - cost ~65K-80K in the Washington DC metro area. I currently own a condo valued at 240K of which 82K is equity (I can access a max of 70K as it is a condo). For the purchase sum 80K, I qualify for both a home equity loan and/or a new mortage. What is the best way to finanace the purchase of the property. Home Equity Loan; Line-of-credit; standard 15, 20 or 30 year fixed mortage, second trust, or a combination? My thoughts are using a home equity loan for the 20% down and getting a standard mortage for the rest. Is the the wisest and most economical way?
Thanks,
Jeff |
| Posted by: loanuniverse Aug 18 2003, 08:23 AM |
Jeff:
It is difficult for me to tell you what would be the wisest and most economical way to go without knowing the rates. Your idea of getting the down payment from a HELOC on your personal residence and using that money for a down payment combined with a conventional 15 year or 30 year mortgage sounds like a good one. If you can get a lender to go along, it seems like it would make the most sense.
I am not a residential lender, but when you are comparing your different financing choices do not forget to account for tax advantages of doing things one way against another.
Good luck.
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